British Steel is launching a consultation which could see the closure of its two high stoves in Scanthorpe, affecting between 2,000 and 2,700 jobs.
The company said that the stoves were “no longer financially sustainable” due to difficult market conditions, the taxation of higher prices and environmental costs.
British Steel’s general manager Zengwei said it was “a necessary decision given the extremely difficult circumstances that the company is confronted”.
The GMB Syndicate called this “devastating news for the inhabitants of Scanthorpe” and called on the government to make “everything possible” to secure the future of steel on the site.
British Steel belongs to the Chinese company Jingye since 2020 and the SCUTHORPE site currently employs 3,500 people.
British Steel had discussions with the British government to support the operation, but no agreement has been concluded.
The company said that it would start an “official consultation” with its workforce and its unions from today on three options.
One is the closure of the stove highs, steel operations and scunning rod mill in early June 2025.
The second is the closure of the stoves and steel operations in September 2025.
The third is a closure of the stoves and steel operations at a future point beyond September 2025.
